Chairman & CEO Xuezhong Miao Sold A Bunch Of Shares In New Gonow Recreational Vehicles

Some New Gonow Recreational Vehicles Inc. (HKG:805) shareholders may be a little concerned to see that the Chairman & CEO, Xuezhong Miao, recently sold a substantial HK$57m worth of stock at a price of HK$0.37 per share. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At New Gonow Recreational Vehicles

In the last twelve months, the biggest single purchase by an insider was when insider Xia Bin bought HK$148m worth of shares at a price of HK$1.12 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.76. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid HK$150m for 135.67m shares. But insiders sold 245.78m shares worth HK$166m. In total, New Gonow Recreational Vehicles insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for New Gonow Recreational Vehicles

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of New Gonow Recreational Vehicles

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. New Gonow Recreational Vehicles insiders own 53% of the company, currently worth about HK$896m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About New Gonow Recreational Vehicles Insiders?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that New Gonow Recreational Vehicles is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...

Of course New Gonow Recreational Vehicles may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.